LONDON (Reuters) - The British public’s expectations for inflation over the next five to 10 years are their highest in four years, and shorter-run expectations have also risen, a monthly survey by polling company YouGov showed on Wednesday.
Official data released last week showed that consumer price inflation rose to its highest in nearly six years at 3.1 percent in November, pushed up largely by the fall in the pound since last year’s Brexit vote.
Wednesday’s survey, sponsored by U.S. bank Citi, showed that expectations for inflation over the next five to 10 years rose to 3.3 percent in December from 3.2 percent in November, above its long-run average and its highest since December 2013.
Inflation expectations for the next 12 months rose to 2.7 percent from November’s 2.6 percent.
“The further increase in inflation expectations raises the risk that the high inflation rates at the moment... could trigger second-round effects, which could warrant further policy tightening from the Bank of England,” Citi economist Christian Schulz wrote in a note to clients.
YouGov polled 2,037 people on Dec. 18 and Dec. 19.
Reporting by David Milliken, editing by Andy Bruce